For the past several years, millennials (commonly referred to as Gen Y) have been a force on the real estate market — but how many are your Lehigh Valley neighbors?

A lot, as it turns out.

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The latest American Fact Finder community survey by the U.S. Census Bureau reveals that more than 23 percent of Bethlehem's population, more than 24 percent of Allentown's population, and more than 25 percent of Easton's population is made up of millennials. Many more surrounding boroughs, such as Bath, Pen Argyl, Bangor and Freemansburg report that roughly one quarter of their residents fall into the millennial category.

Why is this noteworthy now?

To buy, or not to buy?

Until recently, according to the bureau's report "The Changing Economics and Demographics of Young Adulthood," more than 24 million adults over the age of 18 were still living at home with their parents. As the tide has shifted, with the National Association of Realtors reporting that millennials were the largest group of homebuyers in 2017, the Lehigh Valley — like urban cores all over the country — has benefitted from ongoing revitalization. And the younger generation is partly to thank.

The ongoing downtown transformations of Allentown and Easton, the revitalization of Southside Bethlehem and the overall walkability of many of the Valley's small towns is drawing young professionals and those hoping to start or raise families here. They want to be able to get a group of people together for drinks, food trucks or a baseball game without much effort. They want easy access to middle-of-the-week date nights or happy hours.

"The Valley has grown with just the renovations alone, and the revitalization done to Allentown, Bethlehem and Easton really draws anybody who moved out years ago," says Cass Chies, Broker/Owner with RE/MAX Diamond 1st in Palmerton. "Back in the '90s, people were moving out of the area. Now, people have no problem coming back. There is more to offer — not only retail, but restaurants, things to do. You've got so many other venues now that we didn't have back then. It's definitely a draw."

With peak buying season upon us — one where the median sales price of area homes has hit $200,000 and the number of houses available continues to dwindle to more than 30 percent less than this time last year — millennials are very much in competition with other prospective homebuyers looking in a tight local market, with affordability being their one caveat.

"My buyer clientele is about 90 percent millennials, specifically between the ages of 28-35. In my opinion, most 24-28 year-olds would prefer buying. However, many are crippled by student debt," says Justin Kline, real estate agent with Coldwell Banker Hearthside in Hellertown. "Their debt-to-income ratio is too high to get approved for a loan, so they typically need a few years to pay off some of their debt before they can get approved."

To that end, the Greater Lehigh Valley Realtors and the Pennsylvania Association of Realtors are working with state lawmakers to create a First-time Homebuyers Savings Account, enabling millennials who are struggling with coming up with down payments to save up to $10,000 tax-free to buy a home. If the legislation is passed, Pennsylvania would join Alabama, Minnesota, New York, Colorado, Mississippi, Iowa, Virginia, Missouri, Oregon and Montana as states with similar programs for first-time homebuyers.

"Homeownership strengthens communities — not only in the Valley, but across the nation. Eighty-four percent of Pennsylvanians believe it is a good investment to own a home. More millennials would be in the market if they had a mechanism to save money," says Christopher Raad, broker-owner of Harvey Z. Raad Realtors in Allentown and treasurer of the Pennsylvania Association of Realtors. "The program is working its way through legislature now and from all that we've heard, we haven't had opposition from many of our legislators."

The legislation comes in the form of a House bill (Bill 1981) and a Senate bill (Bill 1066). State Sens. Bob Mensch (R-24th) and Wayne Fontana (D-42nd) are the prime sponsors of the Senate bill and state Reps. Rosemary Brown (R-189th) and Ryan Bizzarro (D-3rd) are the prime sponsors of the House bill. Though it is not clear yet how the program will be marketed once it goes through the approval process, an aggressive push will be made throughout the state.

"A marketing plan is currently in the works," says Raad. "There are many millennials who want to be in the housing market and they find home ownership to be a real positive. Everyone deserves the dream of owning a home. This would be a huge benefit to anyone to help them achieve that goal. And while this program is state specific, benefits to the Valley will be greatly felt by it."

As a generation that tends to respond to marketing, much of it can be found based in technology. More than other generations, millennials are the most likely to look online for information about home buying and, according to NAR, are the most likely to find the home they purchased using the Internet. More than 86 percent used a mobile device to search for homes in 2017. And yes, because real estate has been, and always will be, a people business, they're using social media to find agents and listings, or even just for education on facts and materials that all homebuyers can use.

"It is amazing how much technology is used by millennials. Our industry has to continue to adapt to the needs of all consumers, not just millennials," says Sean LaSalle, Associate Broker with Berkshire Hathaway, Fox and Roach. He points out that 94 percent of all buyers start their search for a home online. "Home finding apps, 3D virtual tours with dollhouse views, etc. are giving buyers the ability to shop for homes without ever entering the home."

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Just because millennials are tech savvy, however, doesn't mean they have shied away from relying on the professionals to help them find a home. Compared to Gen Xers and baby boomers, millennials were the number one group in 2017 to buy their homes with the help of a real estate agent. This generation is known for doing their research before jumping into home ownership, and know that despite the generous amount of information there is to find online, nothing is more valuable than personal experience — something only a realtor can provide.

"Millennial buyers are also very well educated on what they could possibly rent the home for, so when they become 'move up' buyers they have the option to either sell or rent their original investment," says Kline. "Millennials are more financially savvy and educated than they get credit for."

What about the rental market?

In March, the Lehigh Valley Planning Commission released a report detailing that the number of renters in the Valley climbed to over 32 percent of all area residents (to nearly 79,000), while the number of homeowners decreased by more than 4,000 residents.

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All over the region, residents — particularly millennials — have increasingly turned to high-end apartment buildings like the Simon Silk Mill near downtown Easton, the Strata Flats in center city Allentown, The Pinnacle at 65 in Bethlehem, and the upcoming Five10Flats in Southside Bethlehem.

These properties are increasingly appealing to young tenants not just because of the convenience of year-to-year leases and appealing locations, but because of lifestyle preferences. Fitness centers, game or media rooms, pet amenities, green space, socializing opportunities and proximity to restaurants and retail all appeal to the younger generation, and many local luxury apartment properties check off several of these boxes.

In Easton, the 19th-century Silk Mill property in the city's West Ward is a mixed-use complex where residents will only have to walk downstairs or down the block to enjoy craft beer, local wine, cafes featuring a variety of food, and other boutique businesses ranging from fitness to medical services. Earlier this year, the developers told The Morning Call that renters were young professionals as well as empty nesters looking to downsize.

With Strata's East, West and Symphony buildings fully occupied in Allentown, the latest project proposed by City Center Allentown is 520 Hamilton, a six-story building housing one and two-bedroom apartments with work spaces for artists, office and retail space. The popularity of apartment living in Allentown has been fueled by word of mouth from satisfied tenants of all generations — not just millennials.

"We have had to do very little marketing. It was a matter of who wanted to be here. A lot of millennials didn't grow up here. They've moving in from outside of the Valley. The whole downtown revitalization and word of mouth has helped [fill Strata]. We have a ton of resident referrals," says Strata's community manager Robert Fox. "We have good relationships with a lot of employers in the Valley. Now people are moving into downtown and commute out to go to work. I think it comes down to that social piece of the atmosphere. Residents love the amenities and all of the social spaces that we have."

In Southside Bethlehem — an area that has seen steady revitalization efforts — the Five10Flats is expected to be ready for its first tenants by Aug. 1. The mixed-use, five-story development will feature restaurants and retail on the first floors, with apartments on the remaining floors. It is within walking distance of the SteelStacks campus and the Sands Casino Resort Bethlehem.

"We certainly are marketing to millennials, and studies show that millennials in particular want to live in an urban environment," says John Callahan, director of business development at Peron Development, which owns the company developing Five10Flats. "If you can provide them with a walkable, safe community that's mixed use and diverse and has that kind of energy or downtown vibe to it, you can be successful. What I love about this project is that it extends the central business district of south Bethlehem further east by a couple of blocks. You have the Lehigh Valley Charter High School for the Performing Arts and Northampton Community College right there, and they've done wonderful things. Our project is right across the street. There's this mode or center of activity going on at that end of Third Street and it extends the downtown a couple blocks eastward."

Looking ahead, it will be interesting to see how millennials continue to shape the real estate market this summer and as we move into the latter half of the year. Will their goals of homeownership in the Valley continue in a competitive market, or will more continue to rent as they tackle the challenges of young adulthood? Regardless of where they end up, they are helping to drive the local economic engine, which is good for everyone in the region.